Comment Text:
Meeting with International Institute of Bankers
Thursday, March 03, 2011
Memo from
Fajfar, Mark
CFTC Staff :
Dan Berkovitz
Terry Arbit
Mark Fajfar
Christopher Cummings
David Taylor
Irina Leonova
Phyllis Cela
Thelma Diaz
Warren Gorlick
Natalie Markman Radhakrishnan
Elizabeth Miller
External Attendees :
Sally Miller (Institute of International Bankers)
Richard Coffman (Institute of International Bankers)
Suzanne Calcagno (Royal Bank of Canada)
Alan Kaplan (Barclays Capital)
Andrew Alter (BNP Paribas)
Joe Seidel (Credit Suisse)
Michael Kadish (Deutsche Bank)
Marcelo Riffaud (Deutsche Bank)
Allegra Kelly (HSBC)
Stephen Frank (HSBC)
Bill Mansfield (Rabobank)
Wenchi Hu (Rabobank)
Laura Schisgall (Societe Generale)
Pia Friis (The Royal Bank of Scotland)
Darryll Hendricks (UBS)
Edward Rosen (Clearly Gottlieb)
Colin Lloyd (Clearly Gottlieb)
Additional Information :
The meeting discussed how the CFTC’s swap dealer requirements would apply to non-U.S. banks with swap activities that relate to the U.S.
The Institute of International Bankers said non-U.S. banks that enter into swaps with U.S. customers are swap dealers with respect to their U.S.-facing swap activities. Requirements would apply to these non-U.S. banks as follows: capital and risk-management requirements should apply entity-wide; for organizational requirements (chief compliance officer, information barriers, etc.), the CFTC should defer to requirements set by the home country regulator, if comparable to U.S. requirements, and a failure to comply with the home country requirements would be deemed a violation of U.S. law; and CFTC requirements that are specific to a particular swap would apply to all swaps with U.S. customers. The determination of which swaps are with U.S. customers (for example, where a non-U.S. entity is advised by a U.S. investment manager or investment adviser) should be made on a consistent basis.
The meeting also discussed how non-U.S. swap dealers would report information about swaps with U.S. customers to U.S. swap data repositories.
